Working Scared: The American Worker in the 21st Century Carl Van Horn, Ph.D. Professor and Director John J. Heldrich Center for Workforce Development and.

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Presentation on theme: "Working Scared: The American Worker in the 21st Century Carl Van Horn, Ph.D. Professor and Director John J. Heldrich Center for Workforce Development and."— Presentation transcript:

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Working Scared: The American Worker in the 21st Century Carl Van Horn, Ph.D. Professor and Director John J. Heldrich Center for Workforce Development and Edward J. Bloustein School of Planning and Public Policy February 18, 2010 www.heldrich.rutgers.edu

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Working Scared 2 Widespread Unemployment, but Worse for Some Americans Cutting across genders, age groups, and ethnicities, the unemployment rate was up drastically in 2009 as compared to December 1999. Not only is the unemployment rate up for all demographic groups, it is more than double in each category. Everyone is hurting in the current downturn, and bear in mind these numbers only reflect those who are unemployed and still looking for work; those workers who have given up or those working part time, but seeking full-time work, are not included here. Source: U.S. Census Bureau, Current Population Survey, December 2009; U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics Program, December 2009.

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Working Scared 3 High Unemployment at All Levels of Education While those with higher levels of education generally experience lower levels of unemployment, the unemployment rate has risen significantly for each group as compared to 10 years ago. The unemployment rate is lowest for those with a Bachelor's degree or higher, and it is one-third of the unemployment rate for those without a high school diploma. Unemployment, however, is up significantly for all groups, demonstrating that a degree is not necessarily a guarantee of job security. Source: U.S. Census Bureau, Current Population Survey, December 2009; U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics Program, December 2009.

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Working Scared 4 A Longer Job Search for the Unemployed The amount of time, on average, that an unemployed worker spends looking for a job has more than doubled from 1999 to 2009, from slightly over three months to more than seven months. Many Americans are out of work much longer than they expected, and have exhausted savings they set aside in the event they became unemployed. This is the longest average length of unemployment since 1948 when the data were first collected. Source: U.S. Census Bureau, Current Population Survey, December 2009.

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Working Scared 5 Unemployment Insurance Covers Fewer Workers It is a common assumption that the unemployed can rely on Unemployment Insurance to help until they find another job, but only 36% of those who are unemployed but still looking for work are covered by Unemployment Insurance. If those who are discouraged and no longer looking for work are factored into this equation, only 30% of the unemployed are covered. The figures presented here are based on a methodology developed by the Center on Budget and Policy Priorities, (Initial claims+continued claims)/total unemployed=UI coverage rate). For the “Real Unemployed" figure, a broadened definition was applied to include members of the population that are not working but would like to be, and are not counted as unemployed. Sources: “Unemployment Weekly Claims Report,” Employment and Training Administration, U.S. Department of Labor; Chad Stone, Robert Greenstein, and Martha Coven, "Addressing Longstanding Gaps in Unemployment Insurance Coverage," Center on Budget and Policy Priorities, August 7, 2007, http://www.cbpp.org/cms/?fa=view&id=517. Source: U.S. Department of Labor, Employment and Training Administration, Unemployment Insurance Weekly Claims Report.

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Working Scared 7 What’s the “Next Big Thing” in the Job Market? Forecasting the fastest growing occupations over 10 years has proven to be an inexact science, and job seekers should take such projections with a grain of salt. The projections released from 1998 through 2008 were mostly wrong, demonstrating the unpredictability of the labor market and economy. These data show how difficult it is to predict which occupations will “boom” over the coming decade. Source: U.S. Bureau of Labor Statistics, Employment Projections Program, Employment Projections 1998-2008, news release, November 30, 1999.

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Working Scared 8 Job Growth Predictions are Uncertain Predicting which occupations will experience the largest growth is also very difficult. While some occupations met or came close to expectations, many of these predictions were off by a long shot. Job growth depends largely on macroeconomic trends and industry growth, which are difficult to forecast and can be derailed by an economic downturn. Source: U.S. Bureau of Labor Statistics, Employment Projections Program, Employment Projections 1998-2008, news release, November 30, 1999.

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Working Scared 9 In the Future, Most Jobs Will Not Require a College Degree The occupations with the largest projected growth require a wide range of education and skill levels, indicating opportunities for job seekers at various skill and education levels. While it is difficult to forecast job growth for specific occupations, it may be helpful for job seekers to bear in mind that although education costs have risen, none of the occupations forecast for steep decline require postsecondary education, while among the occupations forecast for growth, there are opportunities for job seekers at various levels of skill and education. Source: U.S. Bureau of Labor Statistics, Employment Program, Employment Projections 2008-2018, news release, December 11, 2009.

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Working Scared 10 Where Will Most of the Jobs Be? Most of the occupations predicted to experience the largest job growth are ones that currently comprise a major source of employment for the labor force. Occupations such as nurses, home health aides, retail salespersons, and office clerks are jobs that cannot be outsourced to other countries. Source: U.S. Bureau of Labor Statistics, Employment Program, Employment Projections 2008-2018, news release, December 11, 2009.

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Working Scared 11 College Graduates: Is there Room for Everyone? The projected retirement of many Baby Boomers during the 1998-2008 period was expected to create enough room in the labor market for the large number of college graduates predicted to enter the labor force over that period. Baby Boomers, however, have remained in the labor force longer, college graduates have outpaced forecasted growth, and this segment of the labor force has grown while job openings have not kept pace. “For the first time in many years, a Bureau of Labor Statistics analysis finds that total college-level job openings between 1998 and 2008 will nearly equal the number of college- educated entrants to the labor force. And a primary reason is the large number of retirements expected from workers at the leading edge of the "baby boom" generation – those born between 1946 and 1964 – who are in college level jobs." - “The outlook for college graduates, 1998- 2008: A balancing act,” Occupational Outlook Quarterly, Bureau of Labor Statistics, Fall 2000. “As the sour economy dries up employment prospects, more than four-in-ten nonworking people say they have tried without success to find a job. At the same time, nearly four-in-ten employed adults ages 62 and older say they bad economy has forced them to delay their retirement plans.” - Recession Turns Graying Office Grayer: America's Changing Workforce, Pew Research Center, September 2009. Source: U.S. Census Bureau, Current Population Survey, December 2009.

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Working Scared 12 Health Care Benefits are Declining The percent of Americans with employer-provided health care has dropped since 1999. In 2008, 59% of Americans received health care through an employer (either theirs or a family member’s) as compared to 64% in 1999. Only 44% of Americans ages 18 to 64 received health care through their employer, as opposed to 56% in 1999. Source: U.S. Census Bureau, Current Population Survey, 2008.

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Working Scared 13 An Uncertain Retirement Income In 1983, the majority of workers with a pension plan had a “Defined Pension Plan,” guaranteeing set benefits upon retirement for life. In 2007, the majority of workers had a “Defined Contribution Plan,” which has no guaranteed benefits but rather depends on contributions to and investment earnings on the participant’s account. Source: Center for Retirement Research at Boston College, calculations based on data from the U.S. Board of Governors of the Federal Reserve System Survey of Consumer Finances (various years).

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Working Scared 17 Source: Van Horn, C., and Zukin, C., “The Anguish of Unemployment,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, September 2009. The Symptoms of Stress for the Unemployed Percent of Currently Unemployed

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Working Scared 18 Changing American Attitudes About Work from the Heldrich Center’s Work Trends Series, 1999 to 2009 1. Job Security. In 2009, only 41% of working Americans felt very satisfied with the security of their jobs, down from 59% a decade ago. 2. Hours Worked. In 1999, 59% were very satisfied with the number of hours they were able to work and earn money each week. Today, only 37% of workers feel that way. 3. Overall Job Satisfaction. Less than half of America’s workforce (49%) is very satisfied with their job today – a significant drop from 59% a decade ago. 4. Health and Medical Coverage. Satisfaction with health and medical coverage has fallen from 43% to 31% since 1999. During the first decade of the 21st Century, American workers experienced a severe loss of confidence in the U.S. economy, which has led to significant changes in their attitudes toward work: Source: Van Horn, C., and Zukin, C., “The Labor Market, Then and Now: Changing Realities in the 21st Century,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, February 2010.

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Working Scared 19 Changing American Attitudes About Work from the Heldrich Center’s Work Trends Series, 1999 to 2009 5. Balancing Work and Family. In 1999, half of the workforce (51%) was very satisfied with their ability to balance the demands of work and family life. Today, only 40% feel that work is not intruding on their family time. The percentage of women satisfied with their work-life balance has dropped from 52% to 44%, while men were even more dismayed as their satisfaction level plummeted from 49% to 36%. 6. Annual Income. Only 31% were very satisfied with their income 10 years ago, and today the figure is down to 22%. 7. Working Women. Working women have been especially dismayed by the changes in the workplace during the past decade. Those reporting satisfaction with health benefits plunged from 44% to 25%, from 62% to 39% in terms of number of hours worked each week, and from 60% to 42% regarding their sense of job security. Source: Van Horn, C., and Zukin, C., “The Labor Market, Then and Now: Changing Realities in the 21st Century,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, February 2010.

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Working Scared 20 Changing American Attitudes About Work from the Heldrich Center’s Work Trends Series, 1999 to 2009 8. Training Opportunities. Workers report fewer opportunities for additional education and on-the-job training, down from 40% to 28% since 1999. Younger workers under 40 are particularly disappointed, with their satisfaction levels dropping from 42% to 26%. 9. Retirement and Pension Options. Only a third of the workforce (34%) was satisfied with their retirement benefits 10 years ago. Now, that number has fallen to 24%. 10. Future Job Prospects. In 1999, 70% of workers considered it a good time to be looking for a quality job. Only 12% believed that in 2009. Similarly, 64% were confident that they could find a new job as good or better than their previous job, while only 20% believe that today. Source: Van Horn, C., and Zukin, C., “The Labor Market, Then and Now: Changing Realities in the 21st Century,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, February 2010.

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